AFRICA ENERGY AFRICA ENERGY CORP South African Oil & Gas

Creating Value Through Oil Exploration in Africa

AFRICA ENERGY

South African Oil & Gas Exploration ChampionMay 2021

AFRICA ENERGY CORP

The Odfjell Deepsea Stavanger rig drilled the

Brulpadda-1AX discovery in February 2019 and the

Luiperd-1X discovery in October 2020 on Block

11B/12B offshore South Africa.

Corporate Profile

Africa Energy | May 2021Slide 2

Board &

Management

4%*

Lundin

Family

6%

Retail &

Institutional

34%

Share Ownership

• Independent oil and gas exploration company

• Backed by the Lundin Group

• Proven technical team from Energy Africa / Tullow Oil

• Brulpadda and Luiperd discoveries on Block 11B/12B

• Low-risk exploration well planned on Block 2B

Africa Oil Corp.

20%

Corporate Snapshot

AFE/AEC TSX-V/First North Ticker

C$0.245SEK 1.71

Share Price at May 10, 2021

1,395 (1) Common Shares (million)

42.8 Stock Options (million)

$283 Market Cap (US$ million)

$0 Debt (US$)

$13.9 Cash at Mar. 31, 2021 (US$ million)

8 Number of Employees

Asset Footprint

(1) Pending transaction with Arostyle may increase shares outstanding by

64.5 million.

Equity Research

Arctic Securities Oslo Daniel Stenslet

Carnegie Securities Oslo Oddvar Bjørgan

Fearnley Securities Oslo Jørgen Torstensen

Pareto Securities Oslo Tom Erik Kristiansen

SpareBank 1 Markets Oslo Teodor Sveen-Nilsen* Includes shares held directly and indirectly by Ashley

Heppenstall, an advisor to the Board of Directors.

Impact

O&G Ltd.

36%

Lundin Group of Companies

Slide 3

Group market cap information shown in CAD as of March 23, 2021.

Core shareholder with global footprint

Africa Energy | May 2021

14companies

combined market cap

$26billion

Non-Executive Directors

Slide 4

Seasoned oil and gas veterans that know how to create value

Adam Lundin, Chairman

• President and CEO of Josemaria Resources

• Previously Co-Head of the London office for Pareto Securities Ltd.

• Director of several Lundin Group companies

Keith Hill, Director

• President and CEO of Africa Oil Corp.


Ian Gibbs, Director

• CFO of Josemaria Resources

• Previously CFO of Africa Oil Corp.


John Bentley, Director

• Senior Independent Director for several listed oil

and gas companies

• Previously Chairman of Faroe Petroleum plc and

CEO of Energy Africa Ltd.

Johnny Copelyn, Director

• CEO of Hosken Consolidated Investments Ltd.

• Non-Executive Chairman of Impact Oil & Gas Ltd.

• Former ANC Member of Parliament in South Africa


Senior Management

Slide 5

Garrett Soden, President, CEO and Director

• Senior executive in the Lundin Group for over a decade

• Director of several listed natural resource companies

Jan Maier, Vice President Exploration

• 33 years experience in African new venture

exploration

• Previously New Business Development Manager

and Exploration Manager for the African region at

Tullow Oil plc and Energy Africa Ltd.

Jeromie Kufflick, Chief Financial Officer

• Over 20 years financial experience in oil and gas

industry

• Canadian Chartered Accountant

• Previously Corporate Controller for Africa Oil Corp.

Strong management team with regional and sector expertise

Africa Energy management

aboard Deepsea Stavanger

drilling rig.

PGS Apollo 3D seismic

vessel in South Africa.


Solid Track RecordFive Basin Opening Discoveries in Africa

Technical Team of Geologists and Geophysicists

• Working together across Africa for ~25 years

• Stratigraphic Trap Play and Rift Play expertise

• Major oil discoveries in Ghana, Equatorial Guinea, Uganda

and Kenya with Energy Africa / Tullow Oil

• Large gas condensate discoveries offshore South Africa

with Africa Energy

Slide 6

Ghana

Resource numbers obtained from third-party public disclosure and have not been subject to independent audit by the Company.

2007 - 20101 Bbbl

(area believed to hold 1.6 Bbbl)

JUBILEE & TEN FIELDS

Uganda KenyaEquatorial

Guinea

1999 - 2000400 MMbbl

(area believed to hold ~500 MMbbl)

CEIBA & OKUME FIELDS

2008 - 2011>1 Bbbl

(area believed to hold 1.7 Bbbl)

BUTIABA AREA

2012300 MMbbl

(area believed to hold 750 MMbbl)

NGAMIA FIELD

PADDAVISSIE FAIRWAY

2019 - 2020>1 Bboe

South Africa


A technical team that knows Africa

PEL 37

• 14.6% effective interest

• Operated by Tullow Oil

• Cormorant-1 proved the play and source in 2018

• Monitoring nearby drilling in 2021-2022

Asset Overview

Slide 7

Block 2B

Block 11B/12B

• 4.9% effective interest increasing to 10% (1)

• Operated by Total SA

• Brulpadda and Luiperd discoveries in 2019-2020

• Development studies and gas commercialization

• 27.5% participating interest with carried well

• Operated by Azinam Limited

• Proven oil basin with existing discovery from 1988

• Gazania-1 exploration well expected to spud Q3 2021

(1) The Company has an option to acquire the direct 10% interest in Block 11B/12B by issuing 64.5 million

shares to Arostyle.


South Africa OverviewAttractive Location / Fiscal Terms

Slide 8

Blocks 2B and 11B/12B have existing discoveries and nearby infrastructure

Fiscal Terms

State and Black Economic Empowerment (BEE) Participation:

• 10% State back-in rights / 10% BEE participation rights (1)

State Take < 30%

Royalty: 0.5-5%

Income Tax: 28%

Tax benefit from cost uplift

After Tax Profit

Tax Deductible Costs: Including cost uplift, 200% of exploration and appraisal, 150% of capex and 100% of opex

Active Players

(1) Draft Upstream Petroleum Resources Development Bill proposes an increase in State Participation from 10% to 20%.


South Africa Block 11B/12BLarge Discoveries with De-Risked Upside

• Two major gas condensate discoveries

• Three Paddavissie and Deep Prospects de-risked

• Massive acreage position with substantial upside

Slide 9

(1) The Company has signed definitive agreements that, subject to approvals and completion, will

increase the effective interest in Block 11B/12B to 10%.

(2) Resource numbers obtained from third-party public disclosure and have not been subject to

independent audit by the Company.

Asset Summary

AEC effective interest 4.9% (1)

Partners

Total (operator with 45%),

Qatar Petroleum (25%),

Canadian Natural Resources (20%)

Basin Outeniqua Basin

Discovery wells Brulpadda-1AX / Luiperd-1X + DST

Water depth 1,432 m / 1,800 m

Resources > 1 Bboe (2)

Play type Submarine fan

Current programDevelopment Studies and

Gas Commercialization

~


South Africa Block 11B/12BHuge Block with Plenty of Running Room

Slide 10

Block 11B/12B Prospect Map

• Amplitude Variations with Offset (AVO) conformance

to structure and flat spots on Paddavissie Prospects

• 3D validates DHIs and thick reservoir development,

confirming large resource potential of Paddavissie

• Kloofpadda play trend ~400 km2 with leads

supported by DHIs

• Multiple additional prospects and leads identified

3 Paddavissie Drill Ready Prospects

Oil Field

Gas and Condensate Field

2020 2D Seismic (Shearwater) – 7,033 km

2019/2020 3D Seismic (Polarcus/PGS) - ~2,900 km2


South Africa Block 11B/12BLuiperd Gas Condensate Discovery

Slide 11

Paddavissie Objective

• 73 meters net gas condensate pay

• Gas down to bottom of reservoir with water

contact expected down-dip

• Possible oil rim down-dip

• Significantly de-risks remaining three

Paddavissie Prospects

• Drill stem test (DST) flowed 33 MMcfpd

natural gas and 4,320 bpd condensate on

58/64” choke

• Reservoir connectivity better than expected

• Absolute open flow (AOF) potential expected

to be significantly higher than restricted DST

flow rate

• Positive DST results improve development

scenario

Luiperd-1X

NNW SSE

Mature Source Rock

Wet Gas Reservoir

Water Zone


South Africa Block 11B/12BBrulpadda Gas Condensate and Oil Discovery

Slide 12

Paddavissie Objective (Primary)

Deep Objective (Secondary)

“…Total has opened a new world-class gas and oil play and is

well positioned to test several follow-on prospects on the

same block.”

– Total press release, February 7, 2019

N S

1st

2nd

Mature Source Rock

Wet Gas Reservoir

Oil Reservoir

Water Zone


plus oil pay

• High productivity anticipated given

high net-to-gross and good quality of

reservoirs

• Significantly de-risks remaining three

Paddavissie Prospects


• High productivity anticipated given

high net-to-gross and good quality of

reservoirs

• De-risks other prospects and leads

• No oil-water contact encountered

Brulpadda-1AX


South Africa Block 11B/12BPaddavissie Fairway

Slide 13

Paddavissie Prospect

Deep Prospect

Gas & Condensate Field

Oil Field

Source Sequences


South Africa Block 2BProven Oil Basin

• A-J1 oil discovery in 1988 flowed high-quality oil to surface (36° API)

• Low-risk exploration well planned up-dip from discovery

• Analogous to Lokichar Basin (Kenya) and Albertine Graben (Uganda)

Slide 14

Asset Summary

AEC participating interest 27.5%

PartnersAzinam Limited (operator with 50%),

Panoro Energy (12.5%), Crown Energy (10%)

Basin Orange Basin

First well Gazania-1

Planned spud date Q3 2021

Water depth 150 m

First well prospect size > 300 MMbbl (1)

Well cost estimate ~$21 MM

Play type Rift basin

Min. commercial field size < 50 MMbbl at $60/bbl (2)

Work program to date 686 km2 of 3D seismic

Seismic data 3D survey by Western Geco 2013

Past costs to date $14 MM

(1) Best Estimate Prospective Resources; 200 MMbbl have been subject to resource assessment by qualified third-party

resource auditor.

(2) Company estimate.


2021 High Impact Well

South Africa Block 2BA-J Graben Axial Delta Play

Slide 15

• Proposed drilling location will test both Namaqualand and Gazania Prospects

• Gazania Prospect up-dip of proven oil discovery (A-J1)

• Porosity improvement inferred by seismic inversion work


South Africa Block 2BContingent & Prospective Resources

Slide 16

* These volumes have been subject to a resource assessment by a qualified third-party resource auditor. These volumes have been disclosed as an arithmetic sum of multiple estimates of contingent and prospective resource,

which statistical principles indicate may be misleading as to volumes that may actually be recovered. Readers should give attention to the estimates of individual classes of resources and appreciate the differing probabilities of

recovery associated with each class as disclosed in Schedule A of the Company’s Annual Information Form filed on Sedar March 24, 2020. All of the Contingent Resources are classified as Development Unclarified.

** These volumes are Company estimates and have not been subject to assessment by a qualified third-party resource auditor.

Un

-ris

ked

Re

cove

rab

le O

il R

eso

urc

es

(MM

bb

ls)

A-J Graben Axial Delta PlayDiscovery and Prospects* A-J Graben**

Northern

Graben**

Gross 2CGross 2CGross 2CGross 2CContingentContingentContingentContingentResourcesResourcesResourcesResources

-

200

400

600

800

1,000

A-J downdip P50 Gazania

Pelargonium

Ursinia

Namaqualand Eastern Margin

Prospects

3D Seismic

Required

37 MMbbl

163 MMbbl

186 MMbbl

225 MMbbl

400 MMbbl

Best Estimate Prospective ResourcesBest Estimate Prospective ResourcesBest Estimate Prospective ResourcesBest Estimate Prospective Resources

118 MMbbl 3C

400 MMbbl

High Est.

AAAA----J Graben Prospect MapJ Graben Prospect MapJ Graben Prospect MapJ Graben Prospect Map

Northern

Graben

Axial Delta Play

37 MMbbl Contingent,

163 MMbbl Prospective

Prospects

Other A-J Graben Prospects

Proposed well

location

A-J1 well


World-Class Assets

Summary

• Experienced board and senior management

• Technical team with significant exploration success across

Africa from Energy Africa / Tullow Oil

Slide 17

Solid Backing

• Supportive shareholders from the Lundin Group

• Block 11B/12B – Commercial threshold achieved

• Block 2B – High-impact oil exploration well planned in Q3 2021

• PEL 37 – Proven play with additional prospectivity

Proven Team

The Odfjell Deepsea Stavanger rig on Block 11B/12B offshore South Africa.


Appendix

Slide 18 Africa Energy | May 2021

South Africa Block 11B/12BTransactions More Than Double Effective Interest

1. Impact Transaction – Acquisition of Impact’s financial interest in Block 11B/12B

for 509.1 million shares completed in November 2020

2. Arostyle Transaction – Mutual put/call option to transfer Main Street’s 10%

interest in Block 11B/12B to Africa Energy and issue 64.5 million shares

At completion, Africa Energy will hold a direct 10% interest in Block 11B/12B

Slide 19

Notes:

(1) Impact Transaction closed October 22, 2020, and shares were issued on November 12, 2020.

(2) Arostyle Transaction is subject to South African government approval and Block 11B/12B partner consents and waivers.

(3) Corporate structure chart is simplified for illustrative purposes.

Board &

Management 4%*

Lundin

Family 6%

Retail &

Institutional

32%

Pro Forma Share Ownership

Africa Oil Corp.

19%**

Arostyle

4%

Impact Oil & Gas

35%

49%

Loan

Main Street 1549

Block 11B/12B

10%

Arostyle

51%

Corporate Structure

** Africa Oil owns 31% of Impact and will

effectively own 30% of Africa Energy pro forma.

* Includes shares held directly and indirectly by Ashley

Heppenstall, an advisor to the Board of Directors.


Fiscal Terms

Tax Deductible Costs: E&P expenses deductible when incurred, development costs depreciated over time

Income Tax: 35%

Namibia Overview Attractive Location / Fiscal Terms

Slide 20

History of Oil Industry

Namibia is under-explored. Kudu Gas Field discovered in 1974

Mature oil source proven by HRT wells in 2013 attracted return of major oil companies

Namibia has two major ports to service the oil industry

State Take < 50%

Royalty: 5%

Additional Profits Tax (APT): levied in 3 tiers, if after-tax rate of return levels achieved, nil for PEL 37 in 2nd and 3rd tiers

After Tax Profit

Other key terms: No state participation/ No carry-forward

limitation on losses

Recent Country Entrants


Namibia PEL 37 Significant Resource Potential

Slide 21

• Four Cretaceous-age fans identified on 3D seismic

• Mature source rock proven by nearby HRT wells

• Further prospectivity defined to the south with 2D seismic

(1) Africa Energy owns one-third of Pancontinental Namibia, which owns 43.85% of PEL 37.

(2) Best Estimate Prospective Resources; obtained from third-party public disclosure and have not been subject to independent

audit by the Company.

(3) Company estimate.

Asset Summary

AEC effective interest 14.6% (1)

PartnersTullow (operator with 51.15%), Pancontinental

Namibia (43.85%), Paragon (5%)

Basin Walvis Basin

First well Cormorant-1

Spud date September 4, 2018

Water depth 548 m

First well prospect size 124 MMbbl (2)

Well cost ~$28 MM

Play type Submarine fan

Min. commercial field size ~110 MMbbl at $60/bbl (3)

Work program to date 1 well, 3,300 km2 3D and 1,000 km2 2D seismic

Seismic data 3D survey by Polarcus 2014

Past costs to date > $65 MM (3)


Namibia PEL 37Cretaceous Fan Play with Additional Prospectivity

Slide 22

• Cormorant-1 proved fan play and mature source sequence

• Adjacent block, PEL 30, has potential near-term well (Osprey Prospect)

• Albatross at same stratigraphic level as Osprey and in close proximity to Mature Aptian source

• Both plays have seismic “soft” responses indicating presence of reservoir facies

• Main risk remains hydrocarbon migration distance; success at Osprey de-risks Albatross

Cormorant proved the play~Well indicates migration

of heavy hydrocarbonsAlbatross

~300m above

Source Rock

Osprey~400m above

Source RockCormorant-1

~700m above

Source Rock

Prospect-S~1,000m above

Source Rock

(TBD)(TBD)

SE NW


P

Cautionary Statements

This presentation has been prepared and issued by and is the sole responsibility of Africa Energy Corp. (the "Company") and its subsidiaries. It comprises the written materials for a presentation to investors and/or

industry professionals concerning the Company's business activities. By attending this presentation and/or accepting a copy of this document, you agree to be bound by the following conditions and will be taken to have

represented, warranted and undertaken that you have agreed to the following conditions.

The document is being supplied to you solely for your information and for use at the Company's presentation to investors and/or industry professionals concerning the Company's business activities. It is not an offer or

invitation to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. The information contained in this presentation may not be used for any

other purposes.

This presentation contains certain forward-looking information that reflects the current views and/or expectations of management of the Company with respect to its performance, business and future events including

statements with respect to financings and the Company's plans for growth and expansion. Such information is subject to a number of risks, uncertainties and assumptions, which may cause actual results to be materially

different from those expressed or implied including the risk that the Company is unable to obtain required financing and risks and uncertainties inherent in oil exploration and development activities. Readers are

cautioned that the assumptions used in the preparation of such information, such as market prices for oil and gas and chemical products, the Company's ability to explore, develop, produce and transport crude oil and

natural gas to markets and the results of exploration and development drilling and related activities, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance

should not be placed on forward-looking information. The Company assumes no future obligation to update this forward-looking information except as required by applicable securities laws.

Certain data in this presentation was obtained from various external data sources, and the Company has not verified such data with independent sources. Accordingly, no representation or warranty, express or implied,

is made and no reliance should be placed on the fairness, accuracy, correctness, completeness or reliability of that data, and such data involves risks and uncertainties and is subject to change based on various factors.

No reliance may be placed, for any purposes whatsoever, on the information contained in this presentation or on its completeness. The Company and its members, directors, officers and employees are under no

obligation to update or keep current information contained in this presentation, to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein

except where they would be required to do so under applicable law, and any opinions expressed in them are subject to change without notice, whether as a result of new information or future events. No representation

or warranty, express or implied, is given by the Company or any of its subsidiaries undertakings or affiliates or directors, officers or any other person as to the fairness, accuracy, correctness, completeness or reliability of

the information or opinions contained in this presentation, nor have they independently verified such information, and any reliance you place thereon will be at your sole risk. Without prejudice to the foregoing, no

liability whatsoever (in negligence or otherwise) for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise arising in connection therewith is accepted by any such

person in relation to such information.

For additional details on the Company and certain risk factors, please see the Company's Annual Information Form filed on March 24, 2020 under its profile at www.sedar.com.

The resource estimates contained herein are estimates only and there is no guarantee that the estimated resources will be recovered. Volumes of resources have been presented based on a gross interest. Contingent

resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not

currently considered to be commercially recoverable due to one or more contingencies. Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from

undiscovered accumulations by application of future development projects. There is no certainty that it will be commercially viable to produce any portion of the “Contingent Resources” referred to in this presentation.

In the case of “Prospective Resources” there is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the

resources referred to in this presentation.

Uncertainty Ranges for Resources

Estimates of resource volumes can be categorized according to the range of uncertainty associated with the estimates. Uncertainty ranges are described in the COGE Handbook as low, best and high estimates as follows:

A “low estimate” (1C) is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic

methods are used, there should be at least a 90% probability (P90) that the quantities actually recovered will equal or exceed the low estimate.

A “best estimate” (2C) is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If

probabilistic methods are used, there should be at least a 50% probability (P50) that the quantities actually recovered will equal or exceed the best estimate.

A “high estimate” (3C) is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic

methods are used, there should be at least a 10% probability (P10) that the quantities actually recovered will equal or exceed the high estimate.

Slide 23 Africa Energy | May 2021

Thank You

Investor Relations - Canada

Sophia ShaneSophia ShaneSophia ShaneSophia Shane

Email: Email: Email: Email: [email protected]

Tel: Tel: Tel: Tel: +1 (604) 689-7842

Creating Value through Oil and Gas Exploration in Africa

www.africaenergycorp.com

CONTACT DETAILS

Investor Relations - Sweden

Robert ErikssonRobert ErikssonRobert ErikssonRobert Eriksson

Email: Email: Email: Email: [email protected]

Tel: Tel: Tel: Tel: +46 701 11 26 15

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